Friday, October 3, 2008
Cash crunch causes condo crash in LIC
With credit tightening and real estate prices citywide plateauing or starting to fall, one phrase encapsulates the beginnings of a possible cool-down in the once white-hot Long Island City condo market: Fire sale.
That’s the heading on a recent Prudential Douglas Elliman listing for a three-bedroom unit at 44-27 Purves St., a new condo building going up off Jackson Avenue in Queens Plaza. The 1,249-square-foot apartment is selling for $725,000 with $784 in monthly maintenance fees.
Meanwhile, there are signs that sales at Queens West Development’s first condo building, with units first put on sale just after Labor Day, haven’t been all that robust either at a starting price of $650,000 for a one-bedroom.
So the prospect of a rough road ahead is real, even for Rockrose’s highly-anticipated condo development, which boasts unobstructed Manhattan skyline views and a waterfront location that includes a soon-to-be expanded Gantry State Park.
But for units in other developments without those perks, like the condos going up near Purves Street in the heart of asphalt-covered Queens Plaza, the future looks even murkier. “I’m a little surprised at the locations of some of the buildings,” McMillan said. “They’re near major traffic arteries and bridges, where there aren’t many residential amenities.”
Read the whole article about what a train wreck LIC condos are becoming.